I would really appreciate some help with this practice set.

ACCOUNTING OCIETY . Part Two Instructions Using a spreadsheet prepared in Excel and based on the information provided in the next section, complete the following requirements: 1. Determine the predetermined overhead rate. 2. Determine the total number of sunglasses to account for. 3. Prepare an equivalent unit's schedule. The schedule should follow the format below; you may add additional information if you would like. Equivalent Units Whole Units Direct Materials Plastic Frame XXX XXX XXX XXX Direct Materials Polarized Lenses XXX Conversion Costs XXX XXX XXX Beginning Start/Completed Completed/Transferred Out Ending XXX XXX XXX XXX XXX XXX XXX 4. Determine the total costs for the plastic frames and the unit plastic-frame cost for each pair of sunglasses. (Round to the nearest cent) 5. Determine the total costs for the polarized lenses and the unit lens amount per pair of sunglasses. (Round to the nearest cent) 6. Determine the total conversion cost and the conversion cost per pair of sunglasses (Round to the nearest cent.) 7. Calculate the total equivalent unit cost for each pair of sunglasses 8. Prepare a Cost of Production report. This report should show all costs transferred into Work-in-Process and the costs transferred to Finished Goods. This process uses FIFO costing. Round all answers to the nearest cent. 9. Determine the amounts for the following. Show calculations for credit. a) Ending Work in Process Inventory in Units AND Dollars b) Ending Finished Goods Inventory in Units AND Dollars c) Cost of Goods Sold d) Over/Under Applied Manufacturing Overhead ACCOUNTING SOCIETY e) Gross Margin ) Income from Operations 8) Net Income 10. Prepare the necessary Journal Entries related to the manufacturing cycle for this accounting period. Prepare journal entries for the accounting period. Use the account numbers in the chart of accounts, below, instead of the accounts names when writing the journal entries 10000 11000 12000 12100 14000 14100 15000 15050 16000 20000 40000 50000 Chart of Accounts Cash Accounts Receivable Plastic Material Inventory Lens Material Inventory Prepaid Rent Prepaid Insurance WIP FOH FG Wages Payable Sales COGS a Record the purchase of the materials using cash b. Record the materials transferred to WIP c Record the direct labor using cash d. Record the applied FOH e. Record the actual FOH using cash 1. Record over or under applied FOH g. Record the transfer of goods from WIP to FG h. Record the sale of goods on account 1. Record the cost of the inventory that was sold ACCOUNTING DOCIETY Blackboard Instructions for Part Two Add information concerning numbers here and enter into Blackboard as specified below a. When the answer is in units enter the number as is (See example below) 1280 b. When the answer is for ratios (ie. %) and it has a decimal take the decimal out to two spaces (See example below) ii. 280.89 When ratios are in days/times take out to two decimal places (See example below) H. 280.96 days d. When the answer is in dollars ALWAYS include a dollar sign and cents even if the cents is zero add.00 (See example below) iv. $280.00 or $3,800.00 e. When there is a single journal entry enter information EXACTLY as is below in the sequence of Dr/Cr, Account Number, and amount (note the signs, decimals, spaces, and capital letter) v. Dr 10000 $280.00 Cr 20000 $280.00 f. When there is a journal entry requiring two debits or credits enter information EXACTLY as is below in the sequence of Dr/Cr, Account Number, amount, and always put the smaller account number FIRST (note the signs, decimals, spaces, capital letters and order of the accounts) w. Dr 10000 $280.00 Dr 60000 $40.00 Cr 20000 $300.00 vil. Dr 10000 $300,00 Cr 20000 $280.00 Cr 90000 $40,00 vil Dr 10000 $280.00 Dr 60000 $40.00 Cr 70000 $290.00 Cr 90000 $10.00 & When there is a sale enter the sale first and then add the COGS and the transfer of Inventory Dr 10000 $10,368.00 Cr 40000 $10,000.00 Cr 26833 $368.00 Dr 50000 $70,000.00 Cr 12000 $50,000.00 Cr 12100 $20,000.00 h. Follow examples exactly as arel Do NOT copy and paste from Excel into Blackboard. If your entry is formatted incorrectly it will be counted wrong ACCOUNTING SOCIETY Manufacturing Process Information Sally's Sunglasses, a corporation, started a small manufacturing plant that fabricates polarized sunglasses. The manufacturing process starts by placing hot melted plastic in molds for the frames. After the molds are cooled, the frames are then prepared for the placement of the lenses. The lens material is a polarized plastic and each sheet of polarized plastic makes one lens. Once the polarized plastic for the lenses is fabricated for the sunglasses the lenses are then secured into the frame, the sunglasses are then inspected, next they are transferred to finished goods. This process is completely automated. Direct material, plastic-frames is added 100% at the beginning of the process. Lenses are added 100% at the end of the process. Conversion costs are added equally throughout the process. Conversion costs are 35% complete for ending inventory in work in process and the lenses are 0% complete as to ending inventory. At the beginning of the accounting period, Sally's Sunglasses estimated that production would be 20,000 sunglasses. Our predetermined factory overhead rate is based on an estimated FOH of $40,000 and the production of 20,000 sunglasses. This information is to be used to determine the application rate for factory overhead. Estimated and actual direct labor costs totaled $28,050. Actual factory overhead costs totaled $36,000. The following information is available concerning direct materials. Direct Materials-Plastic Beginning Inventory O pounds @ $7.00 per pound Purchase of Plastic 10,000 pounds @ $7.00 per pound Ending Inventory O pounds @ $7.00 per pound Each pair of sunglasses contains a half pound of plastic for the frames. The company starts 20,000 sunglasses for the period, Direct Materials-Lenses Beginning Inventory Osheets of polarized plastic @ 8.31 per sheet Purchases 40,000 sheets of polarized plastic @ 8.31 per sheet Ending inventory 4,000 sheets of polarized plastic @ 8.31 per sheet 1 sheet of polarized plastic makes one lens. ACCOUNTING SOCIETY The Work-in-Process account has the following information Beginning Work-in-process contains o frames Ending Work-in-Process contains 2,000 frames The Finished Goods account has the following Information Beginning Finished Goods contains 5,400 sunglasses Ending Finished Goods contains 5,900 sunglasses The selling price is $50.00 for each pair of sunglasses. Selling and Administrative Costs totaled $180,000 and the tax rate is 30%. ACCOUNTING SOCIETY Sally's Sunglasses, Inc. Statement of Cash Flows For the Year Ended December 31, 2020 Cash Flows from Operating Activities Net Income Adjustments to reconcile net income to Net cash flow from operating activities Depreciation Amortization Gain or Loss Changes in current operating assets and liabilities Net Cash Flow from Operating Activities Cash Flows from Investing Activities Cash received from sale Less cash used for purchases Net Cash Flow from Investing Activities Cash Flow from Financing Activities Cash received from sale Less cash paid dividends or long-term debt Net Cash Flow from Financing Activities Increase or decrease in cash Cash at the beginning of the year Cash at the end of the year ACCOUNTING SOCIETY . Sally's Sunglasses, Inc. Cost of Production Report For the year ended December 31, 2020 Plastic Lenses Conversion Total Costs Beginning Balance Units XXX XXX xxx XXX Total Beginning Costs Transferred in XXX Started and completed XXX XXX XXX XXX Costs Transferred to Finished Goods XXX Ending Costs in Work-In-Process XXX XXX XXX XXX Total Costs XXX Costs to Account For Beginning Work-In Process Direct Materials Direct Labor Applied Factory Overhead Total Costs ACCOUNTING OCIETY Recap of steps for Part 2: Step (1) Step (2) Step (3) Step (4) Step (5) Step (6) Step (7) Determine the predetermined OH rate Determine the total number of sunglasses to account for- see example on page 8 Determine the equivalent Units Schedule - see example on page 8 Determine the total costs for the plastic-frames and the unit plastic frame cost per sunglass, Determine the total costs for the polarized plastic and the unit polarized plastic cost, Determine the total conversion cost and the conversion cost per pair of sunglasses using the predetermined rate Determine the total equivalent cost for each pair of sunglasses (plastic frame cost per unit, lens cost per unit, plus the conversion cost per unit), Prepare a Cost of Production Report - see provided example on page 11. Use FIFO costing Ending WIP in Units and Dollars Ending Finished Goods Inventory in Units and Dollars COGS calculation Over/Under Applied FOH Prepare the journal entries using the Chart of Account numbers instead of names. Prepare an Income Statement showing Gross Margin, Income from Operations, Tax amount and Net Income. Step (8) Step (9) Step (10) Step (11) Step (12) Step (13) ACCOUNTING OCIETY . Part Two Instructions Using a spreadsheet prepared in Excel and based on the information provided in the next section, complete the following requirements: 1. Determine the predetermined overhead rate. 2. Determine the total number of sunglasses to account for. 3. Prepare an equivalent unit's schedule. The schedule should follow the format below; you may add additional information if you would like. Equivalent Units Whole Units Direct Materials Plastic Frame XXX XXX XXX XXX Direct Materials Polarized Lenses XXX Conversion Costs XXX XXX XXX Beginning Start/Completed Completed/Transferred Out Ending XXX XXX XXX XXX XXX XXX XXX 4. Determine the total costs for the plastic frames and the unit plastic-frame cost for each pair of sunglasses. (Round to the nearest cent) 5. Determine the total costs for the polarized lenses and the unit lens amount per pair of sunglasses. (Round to the nearest cent) 6. Determine the total conversion cost and the conversion cost per pair of sunglasses (Round to the nearest cent.) 7. Calculate the total equivalent unit cost for each pair of sunglasses 8. Prepare a Cost of Production report. This report should show all costs transferred into Work-in-Process and the costs transferred to Finished Goods. This process uses FIFO costing. Round all answers to the nearest cent. 9. Determine the amounts for the following. Show calculations for credit. a) Ending Work in Process Inventory in Units AND Dollars b) Ending Finished Goods Inventory in Units AND Dollars c) Cost of Goods Sold d) Over/Under Applied Manufacturing Overhead ACCOUNTING SOCIETY e) Gross Margin ) Income from Operations 8) Net Income 10. Prepare the necessary Journal Entries related to the manufacturing cycle for this accounting period. Prepare journal entries for the accounting period. Use the account numbers in the chart of accounts, below, instead of the accounts names when writing the journal entries 10000 11000 12000 12100 14000 14100 15000 15050 16000 20000 40000 50000 Chart of Accounts Cash Accounts Receivable Plastic Material Inventory Lens Material Inventory Prepaid Rent Prepaid Insurance WIP FOH FG Wages Payable Sales COGS a Record the purchase of the materials using cash b. Record the materials transferred to WIP c Record the direct labor using cash d. Record the applied FOH e. Record the actual FOH using cash 1. Record over or under applied FOH g. Record the transfer of goods from WIP to FG h. Record the sale of goods on account 1. Record the cost of the inventory that was sold ACCOUNTING DOCIETY Blackboard Instructions for Part Two Add information concerning numbers here and enter into Blackboard as specified below a. When the answer is in units enter the number as is (See example below) 1280 b. When the answer is for ratios (ie. %) and it has a decimal take the decimal out to two spaces (See example below) ii. 280.89 When ratios are in days/times take out to two decimal places (See example below) H. 280.96 days d. When the answer is in dollars ALWAYS include a dollar sign and cents even if the cents is zero add.00 (See example below) iv. $280.00 or $3,800.00 e. When there is a single journal entry enter information EXACTLY as is below in the sequence of Dr/Cr, Account Number, and amount (note the signs, decimals, spaces, and capital letter) v. Dr 10000 $280.00 Cr 20000 $280.00 f. When there is a journal entry requiring two debits or credits enter information EXACTLY as is below in the sequence of Dr/Cr, Account Number, amount, and always put the smaller account number FIRST (note the signs, decimals, spaces, capital letters and order of the accounts) w. Dr 10000 $280.00 Dr 60000 $40.00 Cr 20000 $300.00 vil. Dr 10000 $300,00 Cr 20000 $280.00 Cr 90000 $40,00 vil Dr 10000 $280.00 Dr 60000 $40.00 Cr 70000 $290.00 Cr 90000 $10.00 & When there is a sale enter the sale first and then add the COGS and the transfer of Inventory Dr 10000 $10,368.00 Cr 40000 $10,000.00 Cr 26833 $368.00 Dr 50000 $70,000.00 Cr 12000 $50,000.00 Cr 12100 $20,000.00 h. Follow examples exactly as arel Do NOT copy and paste from Excel into Blackboard. If your entry is formatted incorrectly it will be counted wrong ACCOUNTING SOCIETY Manufacturing Process Information Sally's Sunglasses, a corporation, started a small manufacturing plant that fabricates polarized sunglasses. The manufacturing process starts by placing hot melted plastic in molds for the frames. After the molds are cooled, the frames are then prepared for the placement of the lenses. The lens material is a polarized plastic and each sheet of polarized plastic makes one lens. Once the polarized plastic for the lenses is fabricated for the sunglasses the lenses are then secured into the frame, the sunglasses are then inspected, next they are transferred to finished goods. This process is completely automated. Direct material, plastic-frames is added 100% at the beginning of the process. Lenses are added 100% at the end of the process. Conversion costs are added equally throughout the process. Conversion costs are 35% complete for ending inventory in work in process and the lenses are 0% complete as to ending inventory. At the beginning of the accounting period, Sally's Sunglasses estimated that production would be 20,000 sunglasses. Our predetermined factory overhead rate is based on an estimated FOH of $40,000 and the production of 20,000 sunglasses. This information is to be used to determine the application rate for factory overhead. Estimated and actual direct labor costs totaled $28,050. Actual factory overhead costs totaled $36,000. The following information is available concerning direct materials. Direct Materials-Plastic Beginning Inventory O pounds @ $7.00 per pound Purchase of Plastic 10,000 pounds @ $7.00 per pound Ending Inventory O pounds @ $7.00 per pound Each pair of sunglasses contains a half pound of plastic for the frames. The company starts 20,000 sunglasses for the period, Direct Materials-Lenses Beginning Inventory Osheets of polarized plastic @ 8.31 per sheet Purchases 40,000 sheets of polarized plastic @ 8.31 per sheet Ending inventory 4,000 sheets of polarized plastic @ 8.31 per sheet 1 sheet of polarized plastic makes one lens. ACCOUNTING SOCIETY The Work-in-Process account has the following information Beginning Work-in-process contains o frames Ending Work-in-Process contains 2,000 frames The Finished Goods account has the following Information Beginning Finished Goods contains 5,400 sunglasses Ending Finished Goods contains 5,900 sunglasses The selling price is $50.00 for each pair of sunglasses. Selling and Administrative Costs totaled $180,000 and the tax rate is 30%. ACCOUNTING SOCIETY Sally's Sunglasses, Inc. Statement of Cash Flows For the Year Ended December 31, 2020 Cash Flows from Operating Activities Net Income Adjustments to reconcile net income to Net cash flow from operating activities Depreciation Amortization Gain or Loss Changes in current operating assets and liabilities Net Cash Flow from Operating Activities Cash Flows from Investing Activities Cash received from sale Less cash used for purchases Net Cash Flow from Investing Activities Cash Flow from Financing Activities Cash received from sale Less cash paid dividends or long-term debt Net Cash Flow from Financing Activities Increase or decrease in cash Cash at the beginning of the year Cash at the end of the year ACCOUNTING SOCIETY . Sally's Sunglasses, Inc. Cost of Production Report For the year ended December 31, 2020 Plastic Lenses Conversion Total Costs Beginning Balance Units XXX XXX xxx XXX Total Beginning Costs Transferred in XXX Started and completed XXX XXX XXX XXX Costs Transferred to Finished Goods XXX Ending Costs in Work-In-Process XXX XXX XXX XXX Total Costs XXX Costs to Account For Beginning Work-In Process Direct Materials Direct Labor Applied Factory Overhead Total Costs ACCOUNTING OCIETY Recap of steps for Part 2: Step (1) Step (2) Step (3) Step (4) Step (5) Step (6) Step (7) Determine the predetermined OH rate Determine the total number of sunglasses to account for- see example on page 8 Determine the equivalent Units Schedule - see example on page 8 Determine the total costs for the plastic-frames and the unit plastic frame cost per sunglass, Determine the total costs for the polarized plastic and the unit polarized plastic cost, Determine the total conversion cost and the conversion cost per pair of sunglasses using the predetermined rate Determine the total equivalent cost for each pair of sunglasses (plastic frame cost per unit, lens cost per unit, plus the conversion cost per unit), Prepare a Cost of Production Report - see provided example on page 11. Use FIFO costing Ending WIP in Units and Dollars Ending Finished Goods Inventory in Units and Dollars COGS calculation Over/Under Applied FOH Prepare the journal entries using the Chart of Account numbers instead of names. Prepare an Income Statement showing Gross Margin, Income from Operations, Tax amount and Net Income. Step (8) Step (9) Step (10) Step (11) Step (12) Step (13)